U.S. Markets closed

Earnings Beat: ManTech International Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Simply Wall St
·4 min read

ManTech International Corporation (NASDAQ:MANT) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$636m arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were US$0.73, 9.6% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for ManTech International

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from ManTech International's eight analysts is for revenues of US$2.65b in 2021, which would reflect a reasonable 6.6% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to reduce 3.2% to US$3.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.63b and earnings per share (EPS) of US$3.08 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$82.43. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ManTech International, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$60.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ManTech International's past performance and to peers in the same industry. We would highlight that ManTech International's revenue growth is expected to slow, with forecast 6.6% increase next year well below the historical 10.0%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% next year. Factoring in the forecast slowdown in growth, it seems obvious that ManTech International is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that ManTech International's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$82.43, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple ManTech International analysts - going out to 2022, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for ManTech International that you need to be mindful of.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.